Changing mortgage lender??

We have a mortgage with a big bank. We currently pay 4.46% interest rate. Thinking about finding a smaller rate but very new to all this so have some possibly stupid questions...

1.Do you think that's a good interest rate?

2.We've done a lot of renovations so hoping the house will be worth more than when we purchased it. If we were to change to a different lender, to get a smaller interest rate would they value it first and potentially offer us an interest rate based on this?

3.What are the general fees/ processfor changing mortgage providers? Ie. is it pricey, complicated

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A new lender will value your new home ... but your interest rate is not dependant on that.

Your interest rate is usually dependant on
- the amount of your loan (if your loan is for a higher amount, you can usually get a better rate)

- the amount of equity or the LVR (loan to value ratio). If your LVR is below 70% (so you have 30% equity) then you should not need mortgage insurance, which can be a big saving

- the risk / paperwork that you present. If you have a regular salary, and a good credit history you will usually get a good interest rate. If you own your own business, are self employed, contract or have an uncertain salary or credit history and are applying for what is considered a 'low doc loan' ... then you will be charged a higher interest rate.

- check the fees carefully - both the exit/payout fees from your current bank, and the establishment fees for the other banks you are considering

- using a mortgage broker can often be a good thing as they will do much of the running around for you, putting together your application and talking to the various banks to get you the best deal. They charge the bank, so it doesnt cost you anything.

The Following User Says Thank You to BH-KatiesMum For This Useful Post:

A new lender will value your new home ... but your interest rate is not dependant on that.

Your interest rate is usually dependant on
- the amount of your loan (if your loan is for a higher amount, you can usually get a better rate)

- the amount of equity or the LVR (loan to value ratio). If your LVR is below 70% (so you have 30% equity) then you should not need mortgage insurance, which can be a big saving

- the risk / paperwork that you present. If you have a regular salary, and a good credit history you will usually get a good interest rate. If you own your own business, are self employed, contract or have an uncertain salary or credit history and are applying for what is considered a 'low doc loan' ... then you will be charged a higher interest rate.

- check the fees carefully - both the exit/payout fees from your current bank, and the establishment fees for the other banks you are considering

- using a mortgage broker can often be a good thing as they will do much of the running around for you, putting together your application and talking to the various banks to get you the best deal. They charge the bank, so it doesnt cost you anything.

At least you wouldn't have fees associated with leaving fixed rate.
as katiesmum mentioned if you have to pay mortgage insurance if you're borrowing over a certain % of value this isn't transferable between banks so would have to be paid again.

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